Tokenization becomes the next major project in the financial industry

Tokenization: The core trend of financial market transformation

Tokenization is gradually becoming one of the main directions of financial market transformation. After years of experimentation around blockchain, many institutions now seem to be preparing for larger-scale deployments. Broadridge's latest survey of 200 North American executives clearly illustrates this evolution. The results show that financial participants increasingly view tokenized assets as elements that will be integrated into market infrastructure, rather than innovations that are just in the testing stage.

A summary of key data

84% of financial institutions now view tokenization as a strategic technology for their business.
68% of executives surveyed believe that tokenization will change financial markets within three to five years.
Nearly one-third of companies plan to increase investment in tokenization projects in the next two years.
92% of respondents expect that traditional assets and tokenized assets will coexist for a long time.
The American Depository, Trust and Clearing Corporation (DTCC) completed real-time transactions of the first batch of tokenized securities, marking a new step in the integration of blockchain into financial markets.

Tokenization becomes a strategic priority for financial institutions

Tokenization now occupies a high position on Wall Street's priorities. According to Borui's survey, 84% of financial institutions surveyed believe this technology is critical to their business. This result reflects the shift in the industry after years of blockchain experimentation-as financial institutions appear to be preparing to more specifically integrate tokenized assets into their operations.

Tokenization refers to the presentation of the ownership of real assets in the form of digital tokens recorded on the blockchain. This approach can be applied to stocks, bonds, investment funds or real estate. Proponents believe it can simplify settlement, reduce operating costs, enable continuous trading, and help split assets up so that they can be purchased in smaller units.

This trend has been strengthened in the past two years with the launch of several major initiatives. BlackRock has developed blockchain-based treasury bonds, Franklin Templeton has launched tokenized money market funds, and JPMorgan continues to expand settlement services through its Kinexys platform. At the same time, Visa and DTCC are also developing infrastructure to support the use of tokenized assets in financial markets.

Financial markets prepare for phased adoption

Survey results show that this evolution has now gone beyond the pilot project stage. On Wednesday, DTCC completed the first batch of real-time transactions involving tokenized securities, an important step in integrating the technology into traditional markets. This incident shows that the industry intends to connect blockchain infrastructure with the existing financial system.

In addition, surveys show that financial institutions expect tokenization to grow in the next few years. Many companies also plan to increase investment to support this evolution and gradually integrate the technology into their businesses.

survey mainly found that

68% of executives believe that tokenization will change at least some financial markets within three to five years.
Nearly one-third of companies plan to increase investment in tokenization projects by 26% to 50% or more over the next two years.
92% of respondents expect digital assets and traditional assets to coexist for a long time.
69% of companies want to integrate tokenization into existing infrastructure rather than develop a completely independent blockchain system.

These data reflect a common strategy within the industry: companies tend to gradually integrate blockchain into existing platforms rather than completely replace existing infrastructure. This approach not only modernizes operations, but also retains existing systems.

Differences in adoption across financial sectors

Despite growing interest, the adoption of tokenization still varies significantly across financial sectors. Companies focused on capital markets are the most leading, with 44% reporting operating projects in production or large-scale deployment. In contrast, this proportion is only 20% among asset management companies and only 9% among wealth management companies.

The survey also pointed to areas most likely to advance rapidly. About 80% of respondents believe that tokenized mutual funds and money market funds will play an important role within five years-an expectation based on the development of blockchain-based treasury bonds products. On the other hand, only half of respondents expected a similar level of adoption of tokenized stocks during the same period.

These differences suggest that the pace of integration varies by asset class and financial institution business model. Companies focus on areas where operational benefits are most direct, while continuing to connect blockchain networks with existing trading, custody and settlement systems. This incremental approach promotes the development of tokenized assets while limiting structural changes.

The survey results therefore show that tokenized and tokenized assets are entering a new stage of financial market development. Institutions tend to gradually integrate into existing infrastructure while increasing investment. If this trend continues, coming years will measure the extent to which tokenized assets can be integrated into the day-to-day operations of the market.